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Information Structures
Network
Linear
Hierarchical Matrix
Functional Structure
Individuals engaged in one functional activity are grouped into one unit, such as HRM, Sales. Advantages Makes efficient use of specialized resources Makes supervision easy Disadvantages Difficult to get quick decisions Difficult to determine accountability and judge performance Coordination of the activities may be difficult
Board of Directors
Chief Executive
Production
Marketing
Accounts
Personnel
IT
Divisional Structure
Arranged around main products, services or customer groups. Can be further divided into either product or customer structures which enable staff to specialise in particular product or customer group or geographic structure where managers divide the organisation geographically, usually according to location of customers.
Hewlett Packard
HP Services
HP Financial Services
Organization by Division
Individuals engaged in one functional activity are grouped into one unit. Advantages
Easy coordination and high performance Speed of decision making is greater Positive competition between divisions Better control as each division can act as separate profit centre and clear accountability
Disadvantages
Duplication of functions (e.g. different sales force for each division) Negative effects of competition Lack of central control over each separate division The interests of the division may be placed ahead of goals of organisation
Organisation by Area
Hewlett-Packards Headquarters Worldwide
Hewlett Packard
Matrix Structure
A matrix or multidimensional organizational structure may have several structures at the same time. For example, an organization may have both traditional functional areas and major project units.
Virtual Organization
Temporary network of independent companies-suppliers, customers, competitors linked by information technology to share skills, costs and access to one anothers markets. It will not have a central office, organization chart or a hierarchy!!